BANKING & TAXES

Get Your EIN / Tax ID

Your Business Identity with the IRS

An Employer Identification Number (EIN) is a nine-digit number the IRS assigns to your business for tax reporting. Think of it as a Social Security Number for your company. You need one to open a bank account, hire employees, and file business taxes.

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Current IRS Form SS-4
WHY YOU NEED ONE

What an EIN Unlocks

An EIN is required for most business activities. Without one, you can't open a business bank account, hire your first employee, or file taxes as anything other than a sole proprietor.

Open a Business Bank Account

Banks require an EIN to open a business checking or savings account. It keeps your personal and business finances separate.

Hire Employees

The IRS requires every business that pays wages to have an EIN for payroll tax reporting, withholding, and W-2 filing.

Protect Your SSN

Use your EIN instead of your Social Security Number on business documents, contracts, and vendor forms to reduce identity theft risk.

File Business Taxes

Partnerships, corporations, and multi-member LLCs need an EIN to file federal tax returns. Many states require one for state tax registration too.

Who Needs An EIN
LLCs, corporations, and partnerships
Businesses hiring employees
Businesses opening a bank account
Businesses filing excise tax returns
UNDERSTANDING EINs

What Is an Employer Identification Number?

An Employer Identification Number (EIN), also called a Federal Tax Identification Number, is a unique nine-digit number the IRS assigns to business entities operating in the United States. The format is XX-XXXXXXX (two digits, a hyphen, then seven digits). Every business entity that files federal tax returns is required to have one.

An EIN serves the same purpose for your business that a Social Security Number serves for you personally. It identifies your business to the IRS, to banks, to state tax agencies, and to any entity that needs to verify your business for tax or reporting purposes.

Do sole proprietors need an EIN? Not always. If you operate as a sole proprietor with no employees and no excise tax liability, you can use your SSN. However, many sole proprietors still get an EIN to keep their SSN off business documents and reduce identity theft risk. According to the IRS, even a single-member LLC that doesn't strictly need one can apply for an EIN if required for banking or state tax purposes.

Who Is Required to Have an EIN

The IRS requires you to obtain an EIN if any of the following apply to your business:

  • You have employees or plan to hire employees
  • You operate as a corporation, partnership, or multi-member LLC
  • You file employment, excise, alcohol, tobacco, or firearms tax returns
  • You withhold taxes on income paid to a non-resident alien (other than wages)
  • You have a Keogh plan (a tax-deferred retirement plan for self-employed individuals)
  • You are involved with trusts, estates, real estate mortgage investment conduits, or certain types of nonprofits

Beyond IRS requirements, most banks will not let you open a business checking account without an EIN. Many vendors, wholesalers, and contract clients also require it on W-9 forms before issuing payments.

How the IRS EIN Application Works

The IRS issues EINs through Form SS-4, the Application for Employer Identification Number. There are three ways to submit it:

  • Online - The IRS online EIN assistant is available Monday through Friday, 7:00 a.m. to 10:00 p.m. Eastern Time. If approved, the EIN is issued immediately.
  • Fax - Fax the completed Form SS-4 to the IRS. Processing takes approximately four business days.
  • Mail - Mail Form SS-4 to the IRS EIN Operation in Cincinnati, OH. Processing takes approximately four weeks.

Regardless of the method, obtaining an EIN from the IRS is always free. There is never a government fee for an EIN. When you use CrowSmart, our service fee covers the time and expertise to prepare your application correctly and submit it on your behalf.

Important: The IRS no longer issues EINs by telephone for domestic applicants. International applicants (those with no SSN or ITIN and a principal business address outside the U.S.) can still apply by calling the IRS at 267-941-1099 (not a toll-free number).

When You Need a New EIN

Your EIN stays with your business for its lifetime, but the IRS requires a new EIN when you change the ownership or legal structure of your entity. For example:

  • A sole proprietorship incorporates or forms an LLC
  • A partnership becomes a sole proprietorship (only one partner remains)
  • A corporation receives a new charter from the state after dissolution
  • An LLC with multiple members becomes a single-member LLC (or vice versa)

You do not need a new EIN if you simply change your business name, change your address, or change your responsible party. You report those changes to the IRS separately.

Key Takeaway

An EIN is free from the IRS and required for most business entities. You need one to open a bank account, hire employees, and file business taxes. While you can apply yourself on IRS.gov, errors on Form SS-4 can cause rejections and delays. CrowSmart handles the application for you so it gets done right the first time.

YOUR DOCUMENTS

What You'll Receive

Once your EIN is issued by the IRS, you'll have everything you need to move forward:

EIN Confirmation (CP 575)

Official IRS notice

The CP 575 is the official IRS notice confirming your Employer Identification Number. This is the document banks, lenders, and state agencies accept as proof of your EIN. We deliver it to your CrowSmart dashboard as soon as it's issued.

EIN AssignmentBusiness NameTax Filing RequirementsIRS Contact Info

Ready to Use Immediately

Next steps covered

Your EIN is active the moment it's issued. You can use it right away to open a business bank account, register for state taxes, set up payroll, apply for business licenses, and begin accepting payments under your business name.

Bank AccountsState Tax RegistrationPayroll SetupBusiness Licenses

EIN / Tax ID Pricing

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FAQs

Frequently Asked Questions

Got questions? We've got answers. Find everything you need to know about our Compliance service.

An EIN (Employer Identification Number) is a nine-digit number assigned by the IRS to identify your business for tax purposes. You need one to open a business bank account, hire employees, file business tax returns, and apply for business licenses. It also protects your personal Social Security Number by keeping it off business documents.

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